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Report: CT Has 3rd Highest Tax Burden in U.S.

When state and local taxes are combined, Connecticut ranks below only New York and New Jersey.

Connecticut has the distinction of being one of just three states in the nation with a tax burden higher than 12 percent, according to the Tax Foundation. Connecticut has ranked third for seven years in a row.

Since 2005, New York, New Jersey and Connecticut have occupied the top three spots in the Tax Foundation’s annual ranking of state and local taxes. The most recent data was compiled from the fiscal year 2010.

Resource-rich states typically fared the best on the list, as Alaska had the lowest tax burden by shifting taxes to non-residents.

“Resource-rich states, such as Alaska and Wyoming, are only the most dramatic examples of tax exporting,” said Tax Foundation economist Elizabeth Malm, in a written statement. “Major tourist destinations like Nevada and Florida are able to lower residents’ burden by taxing tourists, who are often nonresidents. Nationwide, over a quarter of all state and local taxes are collected from nonresidents.”

Although Connecticut has one of the highest sales tax rates in the country, a report from earlier this year states Connecticut actually ranks 31st because—unlike many other states—there is no local sales tax.

New England States Ranking Tax Burden Connecticut 3 12.3 percent Rhode Island 6 10.6 percent Massachusetts 8 10.4 percent Maine 9 10.3 percent Vermont 13 10.1 percent New Hampshire
The other end of Town November 09, 2012 at 05:58 PM
A little ironic how hurricane Sandy mainly hit the top three states! Hmmmm...
JIM LUNDBORG November 09, 2012 at 11:30 PM
Mr. Karge should do some research on, "The Tax Foundation," before positing that the, "final word," consists of their PR releases. When I can easily discover that a major funder iincludes the Koch Foundation, my antennae go up. A little research reveals that their backing comes from, "Big Busnes." To: The Other End of Town, what's your point? Mr. Karge, what's your view? Connecticut has a generally high qualtity of life and is a great place to call home. I understand, from your profile, that you are from Fairfield County, noted for its' high quality of life in a state that offers a pretty high level of satisfaction. Should we join those areas of the country that offer poor education, health care, housing and other services for a somewhat lower tax rate? On this Veterans' Day Wekend, honor the men and women that presently serve and those that that have served since 1775. Jim Lundborg
ken martin November 11, 2012 at 02:48 AM
I left Connecticut because it is so expensive to live, taxes are high, food, gas, and just the plain cost of living. I live in the south where life is good, gas is .40 cents cheaper and food and the cost of living, rent is cheaper and houses cost less. and you get more bang for your buck. Ct is not a business friendly state. I'm glad I left Ct. 3.5 years ago, I will not be back to live.

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